Daily Markets Broadcast 2018-12-05

US indices gave back the G-20 gains, and more, yesterday as a partial inversion of the US yield curve raised the specter of a US recession in the future. News that the US administration is considering a higher postal rate for a major online retailer exacerbated the decline. Australia’s Q3 GDP growth missed estimates.

US30USD Daily Chart

Source: OANDA fxTrade

The US30 index fell the most in 6-1/2 weeks yesterday amid concerns about the G-20 deal, the US yield curve and the threat of more tariffs, this time domestically

The index is pivoting around the 200-day moving average, which is at 25,090 today

Fed’s Quarles (neutral, voter) is due to speak today and the Fed releases its Beige Book. Some exchanges may have limited trading hours today in observance of George H.W. Bush.

DE30EUR Weekly Chart

Source: OANDA fxTrade

The Germany30 index fell to its lowest in nearly two weeks echoing the mood on Wall Street. Confusing headlines on Italy’s budget added to the pressure

The index remains capped by the 200-week moving average at 11,513 so far this week

Germany’s Markit services PMI for November is due today and is expected to hold steady at 53.3. ECB’s Draghi is also scheduled to speak.

AU200AUD Weekly Chart

Source: OANDA fxTrade

The Australia200 index is falling for a second straight day after Q3 GDP came in below forecast

The 200-week moving average at 5,645 is currently being tested. Last month’s low is at 5,597

Australia registered growth of +0.3% q/q, 2.8% y/y versus forecasts of 0.6% and 3.1% respectively. Note: RBA did not mention growth at all in its post-rate meeting statement yesterday.